Question
Below are market prices of some options. Are there any prices here that you can firmly say violate the no-arbitrage condition? If not, say why
Below are market prices of some options. Are there any prices here that you can firmly say violate the no-arbitrage condition? If not, say why not. If so, indicate what trade you could make to earn an arbitrage profit.
| Stock Price | Strike price | Call price | Put price |
| $51 | $47.50 | $3.88 | $0.20 |
| $51 | $50.00 | $1.99 | $0.80 |
| $51 | $52.50 | $0.79 | $1.45 |
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Principles Of Commercial Real Estate Finance
Authors: Gail Ramshaw, Mortgage Bank
1st Edition
0793157099, 9780793157099
